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RUN YOUR OWN RACE

One of the things I've noticed is that small business confidence can be significantly affected by shifts in the political landscape. The knock-on effect of this is that business momentum can be lost by worrying about the potential changes in the economy.

My own personal mindset is that I know that my business was here yesterday, it's here today and I know it will be here tomorrow

My advice to all small business owners is to not get too distracted by changes that you going on around you. Have the confidence to make the decisions that are right for your business.

One of the keys to managing this process effectively is to have a plan. Setting goals for your business and remaining focused on achieving those goals is one of the smartest ways to overcome external distractions.

Of course, it's prudent to keep an eye on how things are tracking within your own sector and be responsive to changes that have the potential to derail your own business goals but becoming too focused on the 'macro' picture generally doesn't pay dividends.

So, in short, make sure that you are running your own race, stay focused on your own business and the rest will fall into place.

For more quick tips to help your small business, be sure to check out Taggart Tips by clicking here.

 

If you need any advice specific to your personal circumstances, please don't hesitate to give me a call on 07 3391 1188 or email: info@taggartandpartners.com.au


DON'T SPEND A DOLLAR TO SAVE 30 CENTS

I am often asked by my clients for advice on purchasing items for their business such as a new car or more stock.

 

My answer is: it all depends on your motivation!

 

For many small business owners the desire to save tax can drive them to unnecessary expenditure. You know the thought process: "we made a profit this year so we better spend some of our cash to reduce our tax bill".

 

When I hear this I always ask my clients two questions 1) is this purchase really going to benefit the business and 2) will you get a return on your investment. If the answer is yes then you should buy the things that your business needs. This is the right motivation for making the decision to spend or not to spend within your business.

 

Don't get me wrong. Small businesses should always be looking at how they can run a better business and legally mitigate their taxes. Becoming more efficient, making improvements and replacing worn-out assets ect is all part of this process but more savvy business owners only do so when they need to and plan for it.

 

The mindset that you are somehow saving money by spending more is a false one. You can only build wealth from 'after-tax' income so attempting to lower your taxes this way lowers your ability to create wealth. If you need to make a purchase the possible, associated tax benefit should always be secondary to the actual needs of the business.

 

So my advice to you is this: if you're considering making purchases for your business then do so if it is needed and if it expenditure will benefit the business. Just make sure that your motivation is right i.e. don't spend a dollar to save 30 cents in tax!

 

It may well be a better option to pay the 30 cents in tax on your business profit and put the remaining 70 cents in your pocket. Rather than wasting the money on something you don't need the after tax dollars could be used more effectively i.e. retiring debt or providing for retirement by making superannuation contributions.

 

For more quick tips to help your small business, be sure to check out Taggart Tips by clicking here.

If you need any advice specific to your personal circumstances, please don't hesitate to give me a call on 07 3391 1188 or email: info@taggartandpartners.com.au

WHAT'S YOUR BUSINESS FAMOUS FOR?

I recently took a trip to Byron Bay where I visited the famous lighthouse which is renowned for being the most easterly point in Australia.

This got me thinking about what other places, and more specifically businesses, are actually known for.

For example, KFC is famous for its 11 secret herbs and spices and McDonalds is famous for its speedy service.

If you're in business one of the most important things you can do is to identify your USP – unique selling proposition. In competitive sectors there has to be something that sets you apart from other businesses.

Identifying your USP is usually done as part of developing your overall marketing strategy, when you would have undertaken a review of who your target customers are, what their 'needs' are, how you can fulfil those needs and who else there is providing the same product or service as you.

Spending some time considering why your target clients should choose to do business with you rather than your competitor can pay dividends in the long run and can play a key role in developing your marketing messages and demonstrating to your prospective clients that you're the right fit for them.

And it's important to try and choose something that really is unique. Phrases like being 'professional', customer-focused and friendly aren't really going to cut it! They're basic expectations that a customer might have.

You're looking for something memorable and different that would attract a potential client. You also need to make sure you're able to deliver on whatever promise your USP makes.

So make sure you spend some time thinking about what you want to be known for and then make sure you market that message to your clients and potential clients.

For more quick tips to help your small business, be sure to check out Taggart Tips by clicking here.

If you need any advice specific to your personal circumstances, please don't hesitate to give me a call on 07 3391 1188 or email: info@taggartandpartners.com.au

INNOVATE OR DIE!

innovate or die | Raymond Taggart

I recently visited the beautiful Kondalilla National Park in the Glasshouse Mountains in the Sunshine Coast hinterland and did a 4km trek around the gorge. It was obvious that this place had been there for thousands of years with the flora and fauna having adapted to the changing environment in order to survive and thrive.

This got me thinking about the parallels with running a business. To run a successful small business requires a degree of entrepreneurial ability and there are a range of skills required to prosper in this area.

In my opinion, there are a number of fundamental skills that I believe every successful entrepreneur has in common: Read more…

Increasing business profitability | Raymond TaggartThe Holy Grail for most small business owners is to grow their business and simultaneously increase profitability. While you may assume that one will follow the other, what most business owners don't realise is that a business can actually grow too fast, impacting both cash flow and overall profitability.

However, while most people might assume that reducing your costs is the most obvious tactic to increasing profitability in your business, in my opinion there are 3 additional revenue-driving steps that should be taken before you even look at your cost base. These 4 steps in combination will have the biggest overall effect on profitability: Read more…

DON'T GAMBLE WITH YOUR FUTURE

Raymond Taggart | Eagle Farm racecourseI recently had the pleasure of attending Derby Day at beautiful Eagle Farm Racecourse. It was a great day with lots of race-goers having a flutter on the horses.

If there's one thing that you don't want to gamble on though, it's protecting your business and personal assets.

In fact, this is one area that I regularly see issues with among small business owners and one that will pay dividends to review and get right!

In my experience most small business owners do not structure appropriately for their circumstances. It still surprises me how many people aren't aware of the impact that having an incorrect business structure has on both their tax position and the protection of their business and personal assets. Read more…

IS YOUR BUSINESS RUNNING YOU?

I was talking to a client of mine recently who was struggling to manage their work / life balance. In short their business was running them into the ground and they weren't getting enough time to spend on the fun things in life!

If this sounds familiar to you – STOP! Take a step back and think about what's causing the issue. Is your business running you or are you running your business?

All too often we think that our business can't manage without us, that our team will flounder without our leadership or that we're the only ones who can do a certain task. The reality of course is quite different! Read more…

ARE YOU PREPARED TO EXIT YOUR BUSINESS?

for sale sign | preparing to exit your businessPreparing a business for sale is a complex and often long-term process, which requires a lot of preparation and planning. Yet few business owners are prepared when it comes time to be sale-ready.

Exit planning involves careful preparation and consideration of the business, tax and legal implications. Here are five tips to help business owners prepare for a successful business sale:

Prepare early
Business owners should start preparing early to minimise the risk of a failed transaction and to optimise the value of their business. Anticipation of internal and external factors, including market conditions must be anticipated and managed prior to sale.

A seller must provide key factual information for a potential buyer through the due diligence process. Due diligence is a time-consuming process requiring a lot of documentation. A business' failure to keep adequate and accurate financial records can severely damage their sale price and slow down the sales process.  Read more…

ATO PROPOSES CHANGES TO SMALL BUSINESS PENALTIES

The Australian Tax Office has recently proposed some changes to the way they handle mistakes made by small business owners in their tax returns.

For various reasons, many small businesses in Australia make errors that are not deliberate in their income tax returns or activity statements each year. To make it easier for those who make a reasonable effort to comply, the ATO has proposed changes to its approach to penalties.

If implemented, the changes will apply to small businesses with annual turnovers of under $2 million.

The ATO has stated that it will provide one chance before applying a penalty in the following circumstances: Read more…

DON'T PUT ALL YOUR EGGS IN ONE BASKET

raymond taggart | diversification video stillAs many small business owners know from experience, understanding risk is vital when starting, running and growing your business.  Running a successful business involves increasing your choices and reducing your dependencies.

I recently visited Gordon Country, a working cattle property that has been transformed into a wonderful, eco-friendly camping ground in the Goomburra Valley in Queensland.

Recognising the opportunity to expand their business beyond cattle farming due to the sheer size of the property has provided the owners with an excellent chance to diversify their revenue stream and reduce the risk of being totally dependent on their farming business.

And so it is with all business ventures. Read more…

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